Which stocks pay the best dividends?
A dividend is typically a cash payout for investors made quarterly but sometimes annually. Stocks and mutual funds that distribute dividends are generally on sound financial ground, but not always. Stocks that pay dividends typically provide stability to a portfolio but may not outperform high-quality growth stocks.
| Company | Dividend Yield |
|---|---|
| Big 5 Sporting Goods Corp (BGFV) | 18.70% |
| Ready Capital Corp (RC) | 13.68% |
| Arbor Realty Trust Inc. (ABR) | 13.52% |
| Dynex Capital, Inc. (DX) | 12.64% |
| Stock | Market Capitalization | 12-month Trailing Dividend Yield |
|---|---|---|
| Gladstone Investment Corp. (GAIN) | $500 million | 6.9% |
| Modiv Industrial Inc. (MDV) | $112 million | 7.7% |
| LTC Properties Inc. (LTC) | $1.3 billion | 7.2% |
| Realty Income Corp. (O) | $44 billion | 6.4% |
A dividend is typically a cash payout for investors made quarterly but sometimes annually. Stocks and mutual funds that distribute dividends are generally on sound financial ground, but not always. Stocks that pay dividends typically provide stability to a portfolio but may not outperform high-quality growth stocks.
| Stock | Forward dividend yield |
|---|---|
| Banco Santander SA (ticker: SAN) | 3.7% |
| Lloyds Banking Group PLC (LYG) | 6% |
| Banco Bradesco SA (BBD) | 4.4% |
| Barclays PLC (BCS) | 5.2% |
- Hercules Capital: 10.6% dividend yield. ...
- Ares Capital: 9.5% dividend yield. ...
- Horizon Technology: 11.1% dividend yield. ...
- Energy Transfer: 8.4% dividend yield. ...
- Enterprise Products Partners: 7.2% dividend yield.
AAPL pays a dividend of $0.24 per share. AAPL's annual dividend yield is 0.53%. When is Apple ex-dividend date? Apple's previous ex-dividend date was on Feb 09, 2024.
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
- Coca-Cola (KO) Source: Coca-Cola. ...
- Chevron (CVX) Source: LesPalenik / Shutterstock.com. ...
- Schwab US Dividend Equity (SCHD) Source: iQoncept/shutterstock.com.
The Coca-Cola Company ( KO ) pays dividends on a quarterly basis. The next dividend payment is planned on April 1, 2024 .
What is a good dividend?
Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment.
One downside to investing in stocks for the dividend is an eventual cap on returns. The dividend stock may pay out a sizable rate of return, but even the highest yielding stocks with any sort of stability don't pay out more than ~10% annually in today's low interest rate environment, except in rare circ*mstances.
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks as these companies have been raising their payouts year after year. To create passive income, it's vital that dividends consistently increase over time.
| Stock (ticker) | Dividend Yield |
|---|---|
| Lockheed Martin Corporation (LMT) | 2.9% |
| McDonald's Corporation (MCD) | 2.3% |
| Automatic Data Processing, Inc. (ADP) | 2.2% |
| Microchip Technology Incorporated (MCHP) | 2.0% |
Cash dividends
These are the most common types of dividends and are paid out by transferring a cash amount to the shareholders. These dividends are usually paid on a quarterly basis, although some companies may opt for a monthly, semiannual, or one-time lump-sum payment.
Those gains translate to a 36.6% compound annual growth rate for Apple compared to a 7.4% CAGR for the S&P 500 in that time. That means that $10,000 in AAPL stock purchased 20 years ago would be worth about $5.08 million today, assuming reinvested dividends.
Tesla (TSLA) does not pay a dividend.
Amazon (AMZN) does not pay a dividend.
In a market that generates a 2% annual yield, you would need to invest $600,000 up front in order to reliably generate $12,000 per year (or $1,000 per month) in dividend payments.
To have a perfect portfolio to generate $1000/month in dividends, one should have at least 30 stocks in at least 10 different sectors. No stock should not be more than 3.33% of your portfolio. If each stock generates around $400 in dividend income per year, 30 of each will generate $12,000 a year or $1000/month.
How much do you need to invest to get $100 a month in dividends?
If you want to bring home an average of $100 per month ($1,200/year) in super safe dividend income, simply invest $13,800 (split equally, three ways) into the following ultra-high-yield stocks, which sport an average yield of 8.71%!
Rock-solid dividend stocks
Kinder Morgan, Equinix, and Lockheed Martin pay safe dividends and earn contractually secured revenue, enabling them to produce predictable cash flow. On top of that, they have very strong balance sheets. Those features make them some of the most bankable dividends for 2024 and beyond.
The ex-dividend date is the first day the stock trades without its dividend, thus ex-dividend. If you want to get the dividend payment, you need to own the stock by this day. That means you have to buy before the end of the day before the ex-dividend date to get the next dividend. In other words, it's the cut-off date.
If you buy a stock one day before the ex-dividend, you will get the dividend. If you buy on the ex-dividend date or any day after, you won't get the dividend. Conversely, if you want to sell a stock and still get a dividend that has been declared, you need to hang onto it until the ex-dividend day.
While Google is widely known for its success, investors should exercise caution when purchasing its stock. It's important to note that Google doesn't pay shareholders dividends to its investors.
